HP Canada today announced it has resolved a dispute with The Government of Canada, stemming from a complex scheme designed to exploit both parties through contracts inherited through HP’s merger with Compaq Computer Corp. HP Canada has agreed to reimburse the Government of Canada the sum of CDN $146 million – an amount determined by both parties to be appropriate upon investigation – and has thereby fully and completely honoured its contractual obligations.

HP Canada intends to take appropriate steps, including action in the courts to recover these funds from individuals and companies who were involved in a scheme to misappropriate funds from the Government of Canada and HP Canada. The Government of Canada has agreed to cooperate with HP Canada in this effort.

HP determined that it was important for the company to honour its contractual obligation despite the fact there is no evidence that HP employees derived any improper benefit from the scheme. HP also concluded that it was more appropriate to take aggressive action against those responsible and not engage in protracted litigation with the Government of Canada.